How can you get loan easily from Bank or Investor?

Loan Approved

Small business loans are available from a big number of traditional lenders. Small business loans will help your business to grow, a fund for new research and development, that will help you to expand into new grounds, increase sales and marketing labors, permit you to employ new people, and more. I will share here about getting the loan from a bank with some practical advice and insight.

Reason for your Business Loan

You must ensure the reason for your loan to the lender. Business owners need to clearly articulate why they want the business loan and how much(amount) it's needed.

Visit Your Local SCORE and SBDC Offices

If your business is a start-up, you may want to get some guidance and help from the experienced businessman. If you have a division of SCORE in your zone, they are a delightful and free source of guidance and help. SCORE is a non-profit group of retired business directors. You can get online guidance and online counseling. You may go to Small Business Development Center (SBDC) if you have a nearby university.SBDC is a part of the Small Business Administration (SBA) and it exists to support existing and new businesses. It helps small business owners with the application procedure for the small business loan.

Review the Credit History and Credit Score

If your business is a start-up or less than three years old, your particular credit history will be assessed as well as your business credit history. Before applying you must ensure your positive credit history. You have to request your credit report from the major credit reporting organizations. Review the credit reports. If everything is ok, then apply for the loan.

Start Reviewing Your Borrowing Options

Find out the commercial banks available for you.

Don't go to the large, national banks. You may have a better chance for a loan at the smaller commercial banks who are agreed to consider the loan with low requirements. Some other non-bank institutions may have options for you like credit unions. There are other options like microfinance loans that make consider loans to startups. If one lender denies you, then another may consider you. so keep trying.

Prepare Your Business Plan

This is the most important step.

If you want to get a small business loan from any lender, you must have to prepare a good business plan for any business plan writer. In fact, if you have a good business plan, chances to get a loan will be increased by 80%. The business plan is another requirement of the application required by the financial institution like bank or lender. You must include your details in the business plan. Actually, bank or lender or investor will be influenced by your business plan.

Plan a Presentation and Make the Appointment

You have to Prepare a presentation business plan and application for your loan officer or investor.

Financial forecast has to be in spreadsheets with charts and graphs necessarily.

You have to include in the business plan the followings

·        Executive Summary,

·        Mission

·        Vision

·        Market analysis

·        Competitor analysis

·        Market opportunity

·        Target Market

·        Market strategy

·        Management strategy

·        Market analysis

·        SWOT analysis

·        Financial forecast/Profit & loss/Cash Flow

Financial Plan
  ★1/3/5 years forecasting Balance sheet
  ★1/3/5 years forecasting P/L
  ★Break-even analysis
  ★1/3/5years Cash flow analysis
  ★Start up cost

Many loan officers/investor read the Executive Summary at first and decide to make the decision whether consider the next step. Ensure an appointment with your loan officer or Investor and request time to do a good presentation, with visual aids, built on your business plan.